GIBRALTAR POUND

The 'Gibraltar pound' (ISO 4217 currency code: 'GIP') is the currency issued by the Government of Gibraltar. It is exchangeable with the pound sterling at par.

Contents

History

Relationship with the British pound

Coins

Banknotes

References

See also

External links

History

Main articles: Gibraltarian real

Until 1898, the currency situation in Gibraltar was complicated, with a system based on the real being employed which encompassed British, Spanish and Gibraltarian coins. From 1825, the real (actually the Spanish ''real de plata'') was tied to the pound at a value of 6½ pence (1 Spanish dollar = 4 shillings 4 pence).
In 1898, the British pound was made sole legal tender. Since 1927, Gibraltar has issued its own banknotes and, since 1988, its own coins. Gibraltar decimalised in 1971 at the same time as the UK, replacing the system of 1 pound = 20 shillings = 240 pence with one of 1 pound = 100 (new) pence.

Relationship with the British pound

The Currency Notes Act of 1934^[1] confers on the Government of Gibraltar the right to print its own notes, and the obligation to back and exchange each printed note with sterling reserves at a rate of one pound to one pound sterling. Although Gibraltar notes are denominated in "pounds sterling", they are not legal tender in the U.K., but they are exchangeable at par for U.K. notes at banks. Gibraltar's coins are the same weight, size and metal as U.K. coins, although the designs are different. Due to Gibraltar's popularity as a tourist destination (compared with other British territories which issue coinage at parity to sterling) and the fact that the coins are almost identical to U.K. £1 coins, they can be found in circulation in the U.K. fairly frequently.
British coins and Bank of England notes circulate in Gibraltar and are universally accepted and interchangeable with Gibraltarian issues.

Coins

Main articles: Coins of the Gibraltar pound

In 1988, coins in denominations of 1, 2, 5, 10, 20 and 50 pence and 1 pound were introduced which bore specific designs for and the name of Gibraltar. They were the same sizes and compositions as the corresponding British coins, with 2 pounds coins introduced in 1999.

Banknotes

In 1914, the government introduced notes in denominations of 2 and 10 shillings, 1, 5 and 50 pounds. The 2 shilling and 50 pounds notes were not continued when a new series of notes was introduced in 1927. The 10 shillings note was replaced by the 50 pence coin during the process of decimalization. In 1975, 10 and 20 pounds notes were introduced, followed by 50 pounds in 1986. The 1 pound note was discontinued in 1988. In 1995, a new series of notes was introduced which, for the first time, gave the denominations in "pounds sterling" rather than just "pounds".

References

1. Currency Notes Act Government of Gibraltar


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See also

★ Economy of Gibraltar

★ Coins of the Gibraltar pound

★ Currency board

External links